WHY NO SME/SSI UNITS ARE COMING UP IN INDIA

We need to look into the problems of this sector before we talk anything about development. as a retired banker I am pained to know that the govt. both the state and the central government. are not addressing the issue . while there are many opportunities available for this sector to develop and grow we find virtually there is no development for the past few years .

When I had occasions to meet the up- coming and successful entrepreneurs, I get the following feed back

1] the policies of the state and central government are not encouraging the units to come up and they are not user friendly

2] there is absolute competition from china in every sector, virtually it is impossible for a SSI/SME sector to exist

3] the multiple taxation system and cost of transport have become a big hurdle for them

4]the tax concessions available are very less

5] the cost of raising funds from banks and from private institutions are very high

6] marketing avenues are not made easy and open to these sectors

7] while there exists a policy in the PSU sector and the various state and central governments that at least they should buy 25% of their purchases from these units , the same is not implemented

8]high level corruption in the government departments and government agencies

9]lack of management skills and administrative skills among new start ups

10]availability of skilled and unskilled labor in the semi urban, rural areas

11]lack of single window concept from the government

12] NPA norms in the banking sector, making the units sick

13] there is no uniformity in raw material prices and hence costing is difficult

14] wrong policies in the excise and customs sector

15]there is no uniform power policy and pricing among all states and UT

16]lack of new industrial estates in urban areas

17]productivity norms need to be improved with improved technology

18]existing sick units were forced to close leading the fear for new entrepreneurs to come up

19]government not encouraging the sector to identify products

20] huge imports from other countries and killing the Indian market

While I can write more on this broadly if these areas are covered, other related problems can be solved

Who will bell the cat, while we had a lot of expectation from the government in the beginning now we feel that this government at the centre is more entangled in its own problems

Let us give serious thought for reviving this sector.

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